COUNCIL LIVE: Budget discussions continue after executive session

Morgan Chegwidden, budget manager, delivered the second hearing for the city's proposed property tax levy for the 2013 tax year.

The item was not an action item and was simply a state-mandated obligation to open it for public comment, of which there was none.

Chegwidden then presented the second public hearing of the fiscal year 2013-14 budget, which will begin Oct. 1.

Some of the allocated items that had been discussed at the budget workshop were as follows.

$465,138 allocated to the Meet and Confer contract raises.

$200,000 to the fire training center debt service.

$812,953 for raises to other city employees.

$2,445 for contractual obligations, which includes the Water Lily Collection.

$125,000 allocated to San Angelo Fire Department raises.

The $185,341 in revenue over expenditures would be dedicated to a rainy day fund, Chegwidden said.

After some discussion regarding capital projects, Councilman H.R. "Winkie" Wardlaw III made a separate motion for the city to spend $316,000 of the $1.765 million in Capital Improvement funds toward the Fairmount Cemetery columbarium for the coming budget year.

In the following item, the council unanimously approved an ordinance fixing and levying ad valorem texas for the current tax year for use and support of the city for the 2013-14 budget year.

Mayor Dwain Morrison motioned that "the property tax rate be increased by the adoption of a tax rate of 0.776/$100, which is effectively a 4.25% percent increase in the tax rate."

The council had made a record vote Aug. 6 that the proposed property tax rate will be no more than 78.1 cents per $100 valuation.

After further discussion at the Aug. 27 budget workshop, the council expressed a desire to reduce the rate by half a cent.

"The proposed property tax rate of 0.776/$100 valuation is reduced half a cent from the prior year's tax rate. The projected tax revenue will be more than the revenue budgeted in the prior year by about $526,345 combined for both the general and debt service funds," according to a city memo.

The proposed tax rate for the year exceeds the effective tax rate, it states, and state law requires adoption of the ordinance to set the tax rate including the language about a "tax increase."

With one more item from executive session to discuss, the council went into executive session again.

The council made an announcement that the Oct. 15 meeting will be held in the evening, beginning 5:30 p.m.